Image courtesy of Rivian.Amazon recently announced it is leading an equity investment round of $700 million for Rivian, an automotive technology company that manufactures electric vehicles. The investment comes on the heels of Rivian's reveal of the all-electric R1T pickup and R1S SUV at the LA Auto Show last November.
Morgan Stanley analyst Adam Jonas thinks the e-commerce giant's goal of carbon neutrality will take "EVs to the next level." According to a statement by Jonas to CNBC, "Amazon's plans to have 50% of its trips carbon neutral by 2030 implies a major push in electric vans/delivery vehicles. We think investors should prepare for more moves by megafleets to solve for sustainability."
Amazon has been a proponent of emission reduction and energy efficiency for several years. As Environmental Leader noted yesterday, Amazon expects that 50% of all its shipments will be net zero carbon by 2030; the commitment, dubbed “Shipment Zero,” was announced this week in a blog post by Dave Clark, the company’s SVP of worldwide operations. While the goal will not be easy to achieve, Clark wrote that with improvements in electric vehicles, aviation biofuels, reusable packaging and renewable energy, the company can “see a path to net zero carbon delivery of shipments to customers.”
Amazon’s announcement comes a week after Greenpeace called the company out for appearing to have “turned its back on its 100 percent renewable commitment.” In a report titled “Clicking Green Virginia,” Greenpeace says that, despite Virginia’s slow transition to renewable energy, Amazon Web Services has increased its “already massive operations” in the state by 59% since 2017, without adding any additional renewable energy supply.
As for the latest news on Amazon’s interest in electric fleets, Rivian will remain an independent company. Amazon is leading the round, which includes participation from existing shareholders. Additional details about this investment are not being disclosed at this time.
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